Giro cheques to be scrapped

30th April 2012

Thousands of people who receive their state pension or benefits by cheque will soon have to collect it from a local shop instead as Giro cheques will be scrapped from summer.

This means instead of queuing to collect benefits from a post office, people will be given a plastic card to be present at a PayPoint, typically found in shops such as Spar and Costcutter and garages. They will then be given their money.

Some consumer groups are worried the new system will leave older pensioners vulnerable to crime.